Author
Topic: Leasing a new car (Read 2552 times)

I currently have a lease car which goes back in November. I've seen an offer for a BMW M140i which is so tempting, help talk me out of it please, we already have a small Mazda2 that's paid for I can use but as a bit of a petrol head the BMW is calling me and I'm struggling to resist. It is a good deal at £300 PCM for a 36k car but that's 11k that can help me FIRE early, I'm torn, help wise mustachians.

11k @ 6% compound interest over 12 years = c.£20k, thats probably a year off your FIRE date..... or using the 4% rule £800 a year post FIRE. Thats a holiday for a week every year for the rest of your life.

It's a 5 door auto 8k per year 35 x £300 and a £900 deposit. It's a bargain for the car but still 11k I don't need to spend.yiu can get some amazing lease deals I currently have a Scirroco R that's costs me£125 pcm with 2k I paid upfront.

As you point out there can be some very cheap lease deals out there. VWs in particular. Golf GTD for 199 a month. Sure its £2400 a year but its a fixed cost. I bought a 5 year old used car and its probably lost more than 2400 a year, that's before I fix minor faults which would be covered under warranty.

As you point out there can be some very cheap lease deals out there. VWs in particular. Golf GTD for 199 a month. Sure its £2400 a year but its a fixed cost. I bought a 5 year old used car and its probably lost more than 2400 a year, that's before I fix minor faults which would be covered under warranty.

There have always been some amazing deals on lease cars to be fair for various reasons I think this M140i is the end of the line with BMW going to 4 cylinder x drive 1 series as of 2019. If anyone is interested in leasing I know it's not very MMM but check out piston heads they have a leasing thread with some brilliant offers.

Absolutely I'm a huge petrol head and my lust for some shiny new metal is having an impact on my FI for certain. I've decided against the M140 but now a C63 is taking my eye and trying to take my hard earned £££'s! Must resist!

Yea it's an absolutely epic noise, however, the novelty soon wears off and I'll be lusting after something else so the sensible part of me will hopefully win out and I'll stick to the Mazda2 we have at home all paid off when my current lease car goes back.

Sure its £2400 a year but its a fixed cost. I bought a 5 year old used car and its probably lost more than 2400 a year, that's before I fix minor faults which would be covered under warranty.

What's in it for the company selling you the lease? How are they making money on the deal? (Genuine question - the sum cost of all the cars I have ever bought over 20+ years is still only 4 figures, so I have no clue about new car economics.) Don't you have to pay an amount upfront on top of the £199 per month? How much do people typically pay for damage/cleaning when the lease finishes?

The lease companies will get a huge discount on the list price of new cars. Say for example a car is 30k rrp they may be able to buy it for as little as 20k with certain discounts. They lease the car for 2 years at say £250 a month earning them 6k in 2 years. they then sell the car for 18k maybe and make 4k. That's a very simple version of how I think it works but could be wrong.

You get charged for certain damage but fair wear and tear is acceptable in accordance with guidelines by a 3rd party. Cleaning is a quick once over with the hoover and a bucket and sponge prior to returning the car.